City wary of Bank’s £140bn lending scheme

THE Bank of England’s £140bn lending plan will fail to boost the economy, according to our readers.

More than half of the Voice of the City panel, run with PoliticsHome, said the credit easing and lending initiatives will have no positive impact. A third of people (33.91 per cent) said the plans would have no effect on the economy, with nearly a sixth (14.35 per cent) saying they would have a “somewhat damaging” effect. A further 6.52 per cent said they would “greatly damage the economy”.

By contrast about 42 per cent said the Bank’s moves would “somewhat stimulate” the economy.

The panel also showed a strong belief the Bank will add to its £325bn money-printing scheme.

About 39 per cent of people expect an extension of quantitative easing within the next three months and 21.74 per cent said it would happen within six months. Nearly a quarter (24.35 per cent) believe a further boost will come in July.

Readers were divided over whether Britain will escape recession this year.